United Kingdom : Financial Sector Assessment Program-Basel Core Principles for Effective Banking Supervision-Detailed Assessment Report

With the enactment of the Financial Services Act of 2012, the United Kingdom (U.K) reformed fundamentally its institutional regulatory architecture for financial services. The Act replaced the Financial Services Authority (FSA) with a 'twin-peak' supervisory system, consisting of the Prudential Regulation Authority (PRA)—a subsidiary of the Bank of England (BoE)—and the Financial Conduct Authority (FCA). Responsibility for financial stability was assigned to a new statutory subcommittee of the BoE's Court of Directors, the Financial Policy Committee (FPC). The Governor of the BoE was named Chair of the FPC, and the FPC itself was charged with the primary objective of identifying, monitoring, and taking action to remove or reduce systemic risk.